The PS and Chega abstained from voting on the clause of the draft law that gives the Government 180 days to amend the Single Circulation Tax (IUC) Code in order to change the payment dates for this tax from 2027 onwards.

Changes to payment

Under the proposal, car owners will pay the IUC on fixed dates, rather than in the month of the vehicle’s registration. The payment months, however, will differ in 2027 and 2028. Next year, there will be a transitional period (with a schedule that will only apply for one year) and, from 2028, the definitive format will come into force (with a different schedule).

Under the proposal, from 2028, the IUC will be payable by the end of April if the amount is up to €100. If it is over €100 and €500 or less, it is paid in two instalments, in April and October. If it is higher, it is paid in April, July and October.

Transitional year

In 2027, the transitional year, the tax will be paid “in a single instalment, during the month of October” if the tax is €500 or less. In all other cases, it is paid “in two instalments, during the months of July and October”, without prejudice to “the option to pay the full amount in July”. The aim of the transitional rule is to avoid situations in which taxpayers would have to pay the IUC for 2026 and 2027 within a short period.

The PS succeeded in getting an amendment approved that provides for the tax to be paid “based on the total amount of the annual tax assessment per taxpayer”, rather than by vehicle registration. The amendment was approved with votes in favour from the PS, PSD, CDS-PP and IL, and Chega abstained.

The IL also tabled amendments, including a provision for the new rules to apply “in full” in 2027, as explained by Liberal MP Miguel Rangel, but the initiative was rejected.

In the explanatory memorandum to the legislative amendment, the Government explains that the transitional provision for 2027 “ensures the fiscal neutrality of the measure” and opens up the “possibility for the taxpayer to request the cancellation of the IUC assessment for the year 2027 in cases where the registration of a vehicle in categories A, B, C, D or E during that year and before the anniversary date of the registration”.

Taxation period

The legislation states that “the taxation period [for the IUC] corresponds to the calendar year, with the exception of the year of the vehicle’s registration or enrolment in national territory, in which case that period begins on the date of registration or enrolment and ends on 31 December of the respective year”.

If an owner fails to pay an instalment by the specified deadlines, this “implies the immediate due date of the remaining instalments”. The legislation also provides for “the application, in the year of registration, of an exemption in proportion to the number of full months elapsed from 1 January until the date of registration”.

Reactivation of cancelled registration

The general rules of the new model also stipulate that “upon reactivation of a cancelled registration, the tax must be settled and paid within 30 days of the date of reactivation”.

In 2026, the current rules for IUC payments will remain in effect on the anniversary of the car’s registration. The proposal will still have to be put to a final overall vote.